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Supply Chain Mgt of Pepsi

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Supply Chain Mgt of Pepsi
Supply Chain Management of PepsiCo

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Case Details: | Case Code | : | OPER102 | Case Length | : | 14 pages | Period | : | 2005-2011 | Organization | : | PepsiCo. | Pub Date | : | 2012 | Teaching Note | : | Not Available | Countries | : | US; Global | Industry | : | Food and Beverages |
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Abstract: In 2010, PepsiCo Beverage Company (PBC), an operating unit of PepsiCo Inc. (PepsiCo), the second largest food and beverage company in the world, received the supply chain innovation award from the Council of Supply Chain Management Professionals (CSCMP). PepsiCo was given this award for its innovative distribution strategy, the “Direct to Store Delivery model”, that reduced system-wide inventory, eliminated warehouse space constraints, enhanced the potential for unlimited SKU growth, and delivered warehouse cost savings. After showing spectacular growth in the 1990s and early2000s, PBC found it difficult to manage its distribution centers and warehouses. | |
The case looks at how the company tried to optimize cramped warehouses and how it revived its distribution strategy using automation technology. The case also highlights the benefits of total supply chain transformation for PepsiCo. This case can be used by MBA / MS students studying Operations Management as part their curriculum.
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Issues:
» To understand the supply chain process of PepsiCo.
» To understand and discuss PepsiCo’s innovative distribution strategy, the “Direct to Store Delivery model”.
» To examine the benefits of the “Direct to Store Delivery model";.
» To discuss PepsiCo’s collaborative supplier relationship.
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Contents: | Page No. | Introduction | 1 | About Pepsico | 2 | Supply Chain Management at Pepsico | 4 | Procurement of Raw Materials | 4 | Manufacturing
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